Vacancies fall in rental market, rent rise could follow

The latest data from Perth’s rental market suggests landlords could potentially look forward to rising rents in coming months, with vacancies continuing to decline while leasing activity ramps up across the city.

Real Estate Institute of Western Australia statistics showed Perth’s rental vacancy rate fell to 2.5 per cent in the September quarter.

REIWA said 172 suburbs recorded an increase in leasing activity over the period, with 13,356 properties leased in the quarter, a 12 per cent increase on the three months to the end of June.

REIWA deputy president Lisa Joyce said the data was encouraging for WA’s property market overall.

“Historically, the sales market follows the rental market during a recovery,” Ms Joyce said.

Perth’s overall median rent was steady at $350/week, with 110 suburbs recording an increase in median weekly rents, while 117 suburbs recorded no change.

“We can see how close we are to potentially seeing an increase in Perth’s overall median rent price, which will be the first time since April 2017,” Ms Joyce said.

Listings declined by 17 per cent over the quarter, with 6,169 properties available to rent at the end of September.

“From an annual perspective listings are down 19 per cent and on average are taking six days less to lease,” Ms Joyce said.

“With the vacancy rate at 2.5 per cent and listings continuing to lower, we could see more pressure put on the rental market which will lead to an increase in Perth’s overall median rent price.

“With the Perth rental market finally starting to re-balance, now is a good time for tenants to secure their new rental or look into a longer-term lease before rents potentially rise.”